Donald Trump has resumed his campaign to introduce tariffs, following the announcement of a 50% duty on Canada. The US President has now announced the imposition of high tariffs, reaching 200%, on all generic drugs. This move represents an additional shock to America amid escalating global tensions caused by the Middle East conflict and could seriously affect the export of Indian pharmaceuticals.
In a post on his social media platform Truth Social, Trump informed the world of his plans: starting August 1st, there will be a two-year period during which all imported generic drugs will be subject to a zero tariff rate. However, after these two years expire, a 100% American tariff will be imposed for the following year, and then it will be raised to 200%.
The President explained that the reason for introducing these tariffs is to stimulate the return of generic drug production to US territory. Furthermore, companies that do not establish factories and equipment within the specified timeframe will be subject to fines.
According to data from the US Food and Drug Administration, over 90% of medicines sold in the US are generics. Trump emphasized that the policy regarding patented, branded, or innovative drugs will not change. Previously, major global pharmaceutical manufacturers signed agreements with the US government under which billion-dollar drugs were exempted from tariffs.
Earlier, in April, Donald Trump signed an executive order that provided for the introduction of a 100% tariff on imported branded drugs until manufacturers agree to price agreements or commit to producing products domestically. He has now expanded this plan to 200%. India, known as the 'pharmacy of the world,' is a major supplier to the US: one of the five generic medications used in America is produced in India. Exports of Indian generics to the US exceed $10 billion annually, playing a key role in healthcare accessibility for Americans. Thanks to Trump's announcement, Indian generic exports will receive two years of stability, but the subsequent increase in tariffs to 100% and 200% remains a risk factor.
The President, known as the Tariff President, Donald Trump, continues to apply tariffs to both allies and adversaries. Canada is the latest target, facing a significant 50 percent tariff.
This move was made in response to what Trump deemed 'unfair treatment' of American automobiles, dairy products, and alcohol by Canada. The tariffs covered a wide range of goods—from everyday items like wine and hockey sticks to industrial goods, including cement.
Canadian Prime Minister Carney stated in his post on X that this is part of a series of unilateral U.S. trade actions that began with the imposition of U.S. tariffs in direct violation of the Agreement between Canada, the United States, and Mexico. Ontario representative Doug Ford also noted that if these tariffs are implemented, Canada should respond with a tariff for a tariff, dollar for a dollar.
This decision marks a serious escalation of tensions that have been building since Trump's election in January 2025. Previously, Trump's comments about turning Canada into the 51st state of America also heightened tensions, which Carney referenced in his statement regarding threats to Canadian sovereignty.
In addition to imposing tariffs, Trump decided not to renew the existing trade agreement between Mexico, Canada, and the U.S., known as USMCA, signaling a breakdown in trade negotiations between the two neighboring countries. In response, Canada introduced its own 25 percent levy on U.S. goods worth $21.7 billion imported into Canada.
US President Donald Trump has once again imposed tariffs. This time, he has placed duties on goods from Canada. On Monday, he signed an executive order introducing a new 50% tariff on a range of Canadian products, citing 'discrimination' in the alcohol, automotive, and dairy sectors.
According to information from the White House, these duties will take effect in 30 days. It was noted that although some imported goods, such as energy resources, potash, and goods subject to special tariffs, are exempt from duties, the new tariffs also apply to goods imported under the America-Mexico-Canada agreement.
Three statements signed by Trump on Monday list the Canadian goods affected, including cooling equipment and machinery. The White House statement indicated that the president is taking steps to hold Canada accountable for persistent unfair and unequal practices against America, which, according to the administration, has created a burden and caused damage to the US.
Trump cited Section 338 of the Tariff Act of 1930. This law allows the president to impose tariffs of up to 50% on goods from a country suspected of discriminating against American goods without prior Congressional approval. Previously, Trump had threatened to impose high tariffs on Canadian goods as punishment for damages caused to Americans due to severe fires in Canada last week. However, on Monday, a special administrative official told journalists that this action was not related to that issue. According to CNN, this official also noted that the president has other options in this regard.
It should be noted that previously, US President Donald Trump had imposed tariffs on many countries, but the Supreme Court deemed all these tariffs illegal and ordered a refund. Nevertheless, the introduction of new tariffs on Canada has once again raised concerns.
